Albertsons 2015 Annual Report Download - page 50

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48
cash for working capital changes as a result of the NAI Banner Sale and an increase in cash used for financing costs and
income taxes.
Net cash used in the financing activities of discontinued operations were $0, $36 and $46 for fiscal 2015, 2014 and 2013,
respectively. The decrease in cash used in discontinued operations’ financing activities in fiscal 2014 compared to fiscal 2013 is
attributable to lower payments on capital lease and long-term debt obligations.
Annual cash dividends declared for fiscal 2013 were $.0875 per share. During fiscal 2013, the Company announced that it had
suspended the payment of the regular quarterly dividend. With the amendment in fiscal 2015 to the binding term sheet the
Company had entered into with the Pension Benefit Guarantee Corporation (the “PBGC”) in connection with the NAI Banner
Sale, the Company is no longer restricted by that term sheet from paying dividends; however, the Company has no current
intent to resume paying dividends and such payments are subject to limitations under the Company's credit facilities as
discussed in Note 7—Long-Term Debt in Part II, Item 8 of this Annual Report on Form 10-K.
Debt Management and Credit Agreements
The Company’s credit facilities and certain long-term debt agreements have restrictive covenants and cross-default provisions
which generally provide, subject to the Company’s right to cure, for the acceleration of payments due in the event of a breach
of a covenant or a default in the payment of a specified amount of indebtedness due under certain other debt agreements. The
Company was in compliance with all such covenants and provisions for all periods presented. Refer to Note 7—Long-Term
Debt in Part II, Item 8 of the Annual Report on Form 10-K for a detailed discussion of the provisions of the Company's credit
facilities and certain long-term debt agreements, and additional information.
As of February 28, 2015 and February 22, 2014, total debt was $2,489 and $2,504, respectively, under secured loans and
debentures. As of February 28, 2015 and February 22, 2014, there was $776 and $787, respectively, of owned or ground-leased
real estate and associated equipment pledged as collateral under the Company's six-year $1,500 term loan facility (the "Secured
Term Loan Facility"), which was included in Property, plant and equipment, net in the Consolidated Balance Sheets. As of
February 28, 2015, the Company’s five-year $1,000 asset-based revolving ABL credit facility (the “Revolving ABL Credit
Facility") was secured on a first-priority basis by $1,188 of certain inventory assets included in Inventories, net, $220 of certain
receivables included in Receivables, net, $28 of certain amounts included in Cash and cash equivalents and all of the
Company’s pharmacy scripts included in Intangible assets, net, in the Consolidated Balance Sheets. As of February 22, 2014,
the Company’s previous revolving credit facility due March 2018 was secured on a first-priority basis by $1,066 of certain
inventory assets included in Inventories, net, $227 of certain receivables included in Receivables, net, $24 of certain amounts
included in Cash and cash equivalents and all of the Company’s pharmacy scripts included in Intangible assets, net, in the
Consolidated Balance Sheets.
Both the Secured Term Loan Facility and the Revolving ABL Credit Facility limit the Company’s ability to make Restricted
Payments (as defined in both the Secured Term Loan Facility and the Revolving ABL Credit Facility), which include dividends
to stockholders. The Secured Term Loan Facility caps the aggregate amount of Restricted Payments that may be made over the
life of the Secured Term Loan Facility. That aggregate cap can fluctuate over time and the cap could be reduced by certain other
actions taken by the Company, including certain debt prepayments and Permitted Investments (as defined in the Secured Term
Loan Facility). As of February 28, 2015, the aggregate cap on Restricted Payments was approximately $299. The Revolving
ABL Credit Facility permits regularly scheduled dividends up to $50 in aggregate per fiscal year as long as no Cash Dominion
Event (as defined in the Revolving ABL Credit Facility) exists. The Revolving ABL Credit Facility permits other Restricted
Payments as long as the Payment Conditions (as defined in the Revolving ABL Credit Facility) are met.
Capital Expenditures
Capital expenditures for fiscal 2015 were $240, excluding cash paid for business acquisitions, and primarily consisted of
investments in new Save-A-Lot stores, store remodels for Retail Food and Save-A-Lot, the Company's supply chain and
information technology. In addition, during fiscal 2015, the Company paid $55 for the purchase of certain Rainbow and
licensed Save-A-Lot stores. Capital expenditures for fiscal 2016 are projected to be approximately $300 to $320, including
capital lease additions.